Cooper Energy initiated with a Sell at Goldman Sachs

Goldman Sachs analyst Henry Meyer initiated coverage of Cooper Energy with a Sell rating and A$0.15 price target. While the firm says Cooper looks “well positioned” to increase gas production into South East Australia, it is cautious about near-term decommissioning risk, noting that Cooper will spend about 40% of its market cap on an abandonment program in late 2023 with risk that potential scope increases could erode value. The near-term decommissioning risk overshadows East Coast production and the firm cites relative risk for its Sell rating.